Apprenticeship Funding

What is The Apprenticeship Levy?

Funding rules are in place and require employers to either pay into a Levy pot or pay a contribution towards training and assessments. The Apprenticeship Levy, introduced by the government in April 2017, puts employers ‘in the driving seat’ in terms of designing Apprenticeships in England.

The Apprenticeship Levy requires some employers to pay into a Levy pot:

Employers with a paybill in excess of £3 million will pay into an Apprenticeship Levy at a rate of 0.5% of their annual wage bill

Employers with a pay bill less than £3 million are required to contribute towards the cost of Apprenticeship training and assessment. The government will fund 95% of the agreed price and the employer will pay 5%.

How much do I pay for an apprenticeship?

There are different rules and guidelines in place. These take into consideration things like the size of your business, the industry and the level of the apprenticeship. To get a specific number for a specific apprenticeship, get in touch with the team and we’ll run through the specifics.

If you’re Levy-Paying,

Then you pay:

the cost of the apprenticeship from your apprenticeship service account.
5% of any fees your account doesn’t cover.
Any fees over the funding band maximum.

…and the government pays:

95% of any fees your apprenticeship service account funds don’t cover, up to the funding band maximum.

Non-levy-paying (50+ employees),

Then you pay:

5% of the apprenticeship cost.

…and the government pays:

95% of the cost, up to the funding band maximum.

Non-levy-paying (fewer than 50 employees),

Then you pay:

0% for 16-18 year olds, or for 19-24 year olds who have been in care or have an education, health and care plan.
5% for other apprentices.
Any fees over the funding band maximum.

…and the government pays:

100% for 16-18 year olds, or for 19-24 year olds who have been in care or have an education, health and care plan.
95% for other apprentices, up to the funding band maximum.

Additional Apprenticeship Funding

The government offers a £1,000 incentive payment to both you and your training provider for each apprentice you train who is:

16-18 years old.
19-24 years old, and has been in care or has an education, health and care plan.

You don’t pay National Insurance contributions for apprentices under the age of 25 on earnings below the higher tax rate of £827 a week (£43,000 a year).

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Ask our team a question about our courses, how to get started or anything else to do with The Colleges Partnership here, we will get back to you as soon as possible.

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